Atalaya Mining Regulatory News (ATYM)

30 May 2006 07:01

Eastern Mediterranean Res. Pblc LD30 May 2006 AIM: EMED 30 May 2006 EXPLORATION PROGRESS IN SLOVAKIA Highlights • Discovered gold mineralisation and unmined extensions to previously mined silver and gold systems in the world class Stiavnica-Hodrusa precious metals district. • Re-logging and sampling of archived drill core has confirmed that gold and silver mineralisation continues below the base of old workings. • First-pass rock chip sampling has confirmed presence of gold anomalies with the best results being 4.9g/t gold and199g/t silver. • Exploration field office established staffed mainly by Slovak geological specialists. Eastern Mediterranean Resources Public Limited ("EMED") announces that itsexploration program in Slovakia is on schedule and progressing well. EMED has discovered gold mineralisation and unmined extensions to previouslymined silver and gold systems in the world class Stiavnica-Hodrusa preciousmetals district. The field was mined over a period of 800 years and yielded over120 million ounces of silver and 2.5 million ounces of gold. Old workingstypically ceased at the level of drainage adits, usually about 250 metres belowsurface, leaving unmined mineralisation below this level. These discoveries have led to the Company's decision to focus on theStiavnica-Hodrusa and Detva licence areas in central Slovakia. The following exploration programmes are currently underway: O Geological mapping; O Re-logging and sampling of archived drill core; O Soil sampling; and O Interpretation for structure and alteration patterns of high-quality, purchased airborne and ground geophysical data. Data from these programs is being incorporated into EMED's digital, 3D databaseand is assisting with targeting the most prospective areas. Harry Anagnostaras-Adams, EMED's Managing Director said: "This work continues to demonstrate the prospectivity of the Stiavnica-Hodrusaand Detva licence areas for a range of gold, silver and copper mineralisationstyles. We are systematically working towards initial drilling of these areas inthe September quarter this year. EMED has recently taken a number of steps forward as part of its commitment toexploring Slovakia and the surrounding region. An exploration office has beenestablished in Slovakia and fieldwork re-commenced in early May as soon as thesnow cleared. The field team of local geoscientists is led by Chief ExplorationExecutive - Eastern Europe, Jeff Rayner, with local support and communityrelations team led by Juraj Knesl." Stiavnica-Hodrusa Licence Area EMED's licence covers an area of 106 km2 in the central zone of a large,andesitic stratovolcano of Neogene age, within a caldera about 20 km indiameter. The Company's focus is on targets prospective for epithermal andporphyry-style gold, silver and copper mineralisation in this major preciousmetals district. At the Banky prospect EMED has established, by retrieving and interpretingprevious drilling results, that mineralisation continues below the base of oldworkings. Drilling by the Geological Survey of Slovakia in 1959 reported 4metres at 7.98 grams per tonne gold and 330 grams per tonnes silver below thelevel of old workings. At the Banska Bela prospect EMED's first-pass rock chip sampling has confirmedpreviously announced gold anomalies from stream sediment sampling, with the bestresults being 4.9g/t gold and 199g/t silver. Mineralised samples were taken frombrecciated and silicified outcrops over an area 200m long by 100m wide.Follow-up soil sampling and geological mapping is underway. At the Klokoc Skarn prospect EMED's rock-chipping has established the presenceof gold mineralisation and current follow-up involves the relogging of extensivepast drill core which has not previously been assayed for gold. The Sementlov prospect has been downgraded and sidelined due to encouragingresults at other prospects. Detva Licence Area The Detva licence area is located in central Slovakia, about 25 km to the eastof the Stiavnica-Hodrusa district. The geology consists of a caldera-grabencomplex in the centre of a large stratovolcano. Widespread propylitic andlocalised advanced argillic alteration in the licence area indicate substantialhydrothermal activity. This geological setting is considered analogous to of theStiavnica-Hodrusa mineral field and is considered to be a classic geologicalsetting for the formation of large porphyry and epithermal gold orebodies. Reconnaissance mapping at the Banisko-Kalinka prospect in the Detva area showedextensive zones of breccia dykes that are related to shallow intrusive activity.Logging of archived core in the Banisko area shows potassic (biotite-magnetite)alteration in diorite porphyry at 200m depth which indicates a possible porphyrycopper target at depth. Grab sampling by EMED in 2005 discovered gold mineralisation (>1g/t gold) at theBiely Vrh prospect. Recent geological mapping has confirmed the goldmineralisation is characteristic of the upper part of high-sulphidationepithermal systems, indicating that this grassroots prospect is veryprospective. Follow-up soil sampling and geological mapping is underway at both theBanisko-Kalinka and Biely Vrh prospects. -Ends- Enquiries Eastern Mediterranean Resources Nabarro Wells Parkgreen CommunicationsHarry Anagnostaras-Adams Richard Swindells Justine Howarth / Ana Ribeiro+357 9945 7843 +44 (0) 20 7710 7400 +44 (0) 20 7493 3713www.emed-resources.com www.emed.tv References in this announcement to exploration results and potential have beenapproved for release by Mr Ron Cunneen, an employee of the Company, who has morethan 25 years relevant experience in the field of activity concerned and hasconsented to the inclusion of the material in the form and context in which itappears. Notes to editors Stiavnica-Hodrusa Stiavnica-Hodrusa is located in central Slovakia and EMED's licence area coversa substantial portion of this world-class mineral district in Slovakia.Underground mines in this district have historically yielded an estimated totalof 2.4 million ounces of gold, 120 million ounces of silver, 70,000 tonnes ofzinc, 55,000 tonnes of lead and 8,000 tonnes of copper. About Eastern Mediterranean Resources Public Limited EMED listed on AIM in May 2005 following an initial public offering of itsshares. The Company is headquartered in Cyprus and has a strong commitment tothe region. The Group's region of interest is the Mesozoic to Tertiary age tectonic beltthat winds from Eastern Europe to Iran. This belt extends for over 3,000km. Thestrategy is to rapidly evaluate exploration opportunities in severaljurisdictions throughout a quality mineral belt with a high rate of projectturnover. EMED has now established a strong position in the following three areas withinits area of interest: • Cyprus/Middle East exploration is centred on the Troodos ophiolitecomplex. The targeted mineralisation style is volcanic-hosted massive sulphidecopper deposits under shallow cover, similar to the larger Cyprus copper mines -three of which exceeded 10 million tonnes of ore, at grades between 1% and 4.5%. • Eastern Europe exploration areas are centred on a cluster of volcaniccentres in Slovakia. Low-detection geochemical methods are being applied tothese areas for the first time. The targeted mineralisation styles arehigh-grade epithermal gold, or bulk-mineable epithermal gold and porphyrycopper-gold. • Caucasus exploration areas and options over additional prospectsforming a cluster of gold prospects in and around Georgia. Main prospect isZophkito with resources (Russian classification) of 2.4 million ounces of gold. For further information on the Company's activities, visitwww.emed-resources.com or www.emed.tv This information is provided by RNS The company news service from the London Stock Exchange